Balioons By Sunset (BBS) is considering the purchase of two new thot air balloons so...
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Accounting
Balioons By Sunset (BBS) is considering the purchase of two new thot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of $1. Present Valuc of st. Future Value Annuty of $1. Present. Value Anouity of 511 Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback perlod. Note: Round your answer to 2 decimal ploces. 3. Net present value (NPV) Note: Do not round intermediate calculotions. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollor. 4. Recalculate the NPV assuming BeS's cost of capital is 14 percent Note: Do not round intermediate calculations. Negotive omount should be indicated by a minus sign. Round the final answer to nearest whole dollar
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